Round-up of South Korean financial markets:

 

** South Korean shares closed lower for a second day on Tuesday, as investors took a cautious approach ahead of the U.S. Federal Reserve's monetary policy meeting. The Korean won weakened, while the benchmark bond yield fell.

 

** The benchmark KOSPI closed down 6.99 points, or 0.26%, to 2,680.46, after rising as much as 0.55%.

 

** Among heavyweights, technology giant Samsung Electronics rose 0.30%, while peer SK Hynix and battery maker LG Energy Solution lost 0.45% and 0.24%, respectively.

 

** Foreigners were net buyers of 119.2 billion won ($94.05 million) worth of shares on the main board.

 

** The stock market opened higher tracking the Wall Street's rebound overnight but erased earlier gains on caution ahead of the U.S. monetary policy meeting, said Shinhan Financial Investment's analyst Choi Yoo-june.

 

** The U.S. Federal Reserve will hold its monetary policy meeting on May 3-4, with many investors expecting a "big step" increase in interest rates by 50 basis points.

 

** South Korea's consumer inflation quickened far more than forecast and hit a more than 13-year high in April, boosting expectations in the bond market for more central bank interest rate rises this year.

 

** The won closed trading at 1,267.8 per dollar on the onshore settlement platform, 0.21% lower than its previous close at 1,265.1.

 

** In offshore trading, the won was quoted at 1,267.5 per dollar, while in non-deliverable forward trading, its one-month contract was quoted at 1,267.3.

 

** In money and debt markets, June futures on three-year treasury bonds rose 0.04 point to 104.96 in late afternoon trade.

 

** The most liquid 3-year Korean treasury bond yield rose by 0.9 basis point to 3.089%, while the benchmark 10-year yield fell by 1.3 basis points to 3.359%, after hitting the highest since May 14, 2014 at 3.426%. ($1 = 1,267.4600 won)

(Reporting by Jihoon Lee; editing by Uttaresh.V)